Companies operating in multiple countries must comply with legal requirements concerning transfer pricing. China is not a member of the OECD, however as a member of the G20 China is still actively involved in the development of the BEPS-13 action plan. Therefore, dealing with adjusted regulations and interpreting them can be a challenge.
The BEPS-13 action plan provides a template for multinational enterprises (MNEs) to report annually. They are required to provide information regarding each tax jurisdiction in which they conduct business. Accordingly, if a company owns a subsidiary of some kind in China, they must comply with the action plan and provide a Country-by-Country (CbC) Report.
As a provider for transfer pricing services, acquiring the necessary data can prove difficult. To make sound decicions on transfer pricing